Senior executives in the asset-management industry have handed down a stark warning to the UK Government over plans to curb immigration. Their fears that London's competitiveness could be hurt chime with a similar warning from inside the government this morning, from business secretary Vince Cable.

The immigration issue is one of three key challenges that if not dealt with, could see London lose its status as one of the world's most important centres for asset management, the industry leaders warned. The others are tax and heavy-handed regulation, particularly from Europe, they said.